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sergeinik [125]
3 years ago
10

Champion Bakers uses specialized ovens to bake its bread. One oven costs $840,000 and lasts about 3 years before it needs to be

replaced. The annual operating cost per oven is $10,000. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? (Round your answer to whole dollars)
Business
2 answers:
Minchanka [31]3 years ago
8 0

Answer:

$353741

Explanation:

A =( 1 + (1/(1+r))^t/r

A = Annuity factor

r = cost of capital = 11/100 = 0.11

t = period = 3

A = (1+(1/1+0.11))^3/0.11

A = 2.4437

Principal cost/ annuity factor

840000/2.4437 = $343741.046

annual operating cost per oven is $10,000.

$343741.046 + $10,000 = $353741.046

In Whole number

$353741

kicyunya [14]3 years ago
7 0

Answer:

$347,769.72

Explanation:

yearly expense = present estimation of all expenses/PVAF(r,n)

PVAF or present worth annuity factor is the aggregate of limiting elements at a given occasional rate r for n number of periods .

Identical Annual Cost  

= 864,868.52/PVAF(10%,3 years)  

= 864,868.52/2.4869  

= $347,769.72

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Toyota Motor Company operates in many different countries and pays taxes at many different rates.​ However, they always pay the
Amiraneli [1.4K]

Answer: Foreign neutrality

Explanation:

 According to the given scenario, the Foreign neutrality tax policy is one of the concept that is specifically used by the Toyota motor company for operating various types of functions and operations in the environment.

The neutrality is basically used to create the various types of  incentives in an organization and support the foreign taxation process and the foreign neutrality is one of the tax policy that is used for paying taxes across countries with different types of rates.

 Therefore, Foreign neutrality is the correct answer.

6 0
3 years ago
Paper Co. had net income of $70,000 during the year. The dividend payment was $10,000. The following information is available: M
Zina [86]

Answer:

net cash from operating activities = $0

Explanation:

given data

net income = $70,000

dividend payment = $10,000

Mortgage repayment = $20,000

Available-for-sale securities purchased = 10,000 increase

Bonds payable  = 50,000 increase

Inventory = 40,000 increase

Accounts payable = 30,000 decrease

solution

we get here net cash from operating activities that is express as

net cash from operating activities = net income - inventory increase - accounts payable decrease   .......................1

put here value

net cash from operating activities = $70,000 - $40,000 - $30,000

net cash from operating activities = $0

because

  • Dividend payments, repayment (mortgage) and debt issuance (bond) financing activities. The purchase of debt or equity instruments (securities available for sale) is an investment activity.
  • Operating Cash Flow Investing cash flow excludes this financing. Further, these factors do not affect net income. Consequently, net cash provided by operating activities can be determined by adjusting net income payable in inventory and accounts.
  • To differentiate between the cost of goods sold (deducted from income) and cash payments to suppliers, a two-step adjustment is required. The change in inventory is the difference between the prices of goods sold and purchased.
  • The difference between the amount payable to buyers and suppliers is the change in accounts payable. Accordingly, an increase in inventories and a reduction in accounts payable is required to change the cost of goods sold to cash paid to suppliers.

3 0
4 years ago
Which of the following is an example of crowding out? a. An increase in government spending increases interest rates, causing in
kicyunya [14]

Answer:

a. An increase in government spending increases interest rates, causing investment to fall.

Explanation:

Crowding out occurs when increased government spending backfires and has a negative impact in the private sector due to the increase in interest rates, which are pivotal in the decision-making process of private investments. A high intensity crowding out may even lead to a negative overall impact in the economy. Therefore, the answer is alternative a.

3 0
3 years ago
__________ is a major skill needed in tennis?
Zolol [24]
Hand and eye coordination
4 0
3 years ago
Which of the following relies the most on the health of the economy?
guajiro [1.7K]

Answer: Trade Industries

Explanation:

Trade industries survive as long as people and businesses can afford to trade goods and services. If entities are unable to afford consumption for a reason such as a decline in income, the trade industries will suffer.

When the economy is not healthy, income levels of people will reduce and so trade industries will suffer as opposed to a healthy economy where entities can afford goods and services which will ensure the survival of trade industries.

8 0
3 years ago
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